Currency
Currencies
A system of money in general use in a particular country.
Alex Gurevich
Asoka Woehrmann
Brent Johnson
Carley Garner
Christophe Ollari
Dave Matias
Eric Peters
Erik Conley
Francesca Taylor
Giovanni Pozzi
Greg Diamond
Greg Weldon
Ian Bezek
James Aitken
Jim Martens
Louis Bacon
Mahmood Noorani
Marc Chandler
Marcin Liberadzki
Meb Faber
Michael Covel
Murray Gunn
Roger Montgomery
Stephen Bigalow
Steve Hanke
Steven Mnuchin
Tariq Dennison
Tom Denham
Tony Carrion
Vincent Deluard
- The currency markets tend to note changes in the global financial system before other asset classes
- This is because currencies are the largest, most-trade and most liquid markets
- Currencies rarely have extreme gains or losses because they are all relative (they trade in ranges)
- Currencies are priced against each other
- Except for hyperinflation, they rarely go to zero
- It is also rare for them to make huge gains
- Countries can attempt to maniuplate their currencies for gain:
- Lower currency values can help increase exports (they are cheaper) and decrease imports
- Lower currency values can help generate inflation
- VS. strong currencies which help drive deflation (imports cheapen)
- The political party in power may want a cheaper currency in order to boost the economy (and their prospects of staying in office)